A significant portion of the equity was raised in the current round and other existing investors - Omidyar Network, Aspada Investments and Khosla Impact - also participated in the funding, IIFL said in a statement here.

NeoGrowth will use the funds to help small retailers, including qualified borrowers with little or no credit history, access credit in the country, it said.

Using a data and technology-driven approach, NeoGrowth provides small and mid-sized retail enterprises with flexible, innovative loan products that are secured against retailers' future credit card and debit sales.

"The additional investment by all existing investors in this round also is a demonstration of their continued excitement. We will use this money to build our loan book, and to invest in technology, brand, and distribution," Dhruv Khaitan, Founder & Chairman of NeoGrowth, said.

Borrowers have access to the financial technology company's digital approach - managed through NeoGrowth's in- house technology platform, flexible repayment terms, and minimum credit history requirements. More than three in four NeoGrowth customers return for a new loan, it claimed.